Answer:
.B. The amount of depreciation expense recognized in 2019 would be greater if Dinwiddie depreciates the car under the straight-line method than if the double declining balance method is used
Explanation:
The double-declining method recognizes higher depreciation amounts in the first years of an asset 's life. The method applies twice the rate of the straight-line method on a declining book value balances. In the latter years, the depreciation amount will be less because the book value will have declined considerably.
In this case, a useful life of six years attracts a straight-line depreciation rate of 16.6 % (1/6 x 100). the double-declining method will apply a rate of 33.2 %.
The straight-line method applies a constant rate throughout the use-life of an asset. The book value decreases at a constant rate, unlike in double -declining, where the book value decreases rapidly in the early years of the asset. 2019 will be the fourth year in this case. The fourth-year is in the latter stages of a six-year useful life.
Answer and Explanation:
The indication of the basic analysis and the debit credit analysis is as follows;
Date Basic Analysis Debit - Credit Analysis
Aug. 1 The asset Cash is increased; Debits increase assets;
the stockholders' equity account Debit Cash
Common stock is increased. $10,880
Credits increase stockholders' equity
Credit Common stock
$10,880
Aug. 4 The asset Prepaid Insurance Debits increase assets;
is increased; Debit Prepaid Insurance
the asset Cash is decreased. $ 1,500
Credits decrease assets;
Credit Cash
$ 1,500
Aug. 16 The asset Cash is increased; Debits increase assets;
the revenue Service revenue Debit Cash
is increased. $880
Credits increase revenues:
Credit Service revenue
$880
Aug. 27 The expense Salaries expense Debits increase expenses:
is increased; Debit Salaries expense
the asset Cash is decreased. $680.
Credits decrease assets:
Credit Cash
$680
Answer:
The final payment would be of amount $9000
Explanation:
The keywords of the question state that the bank needs an equal amount of money by both of the payment procedures. Hence, no matter which payment method I choose on the outstanding loan, the bank would need a sum of 3x3000 = $9000
Answer:
Jimmy must pay federal income taxes for the $500 earned in dividends during last year = $500 x 28% = $140
Since interest earned on federal securities are not taxed by state or local governments, there is no state tax liability.
Jimmy's total taxes due from dividends earned = $140
Answer:
A home improvement store that just began business last year and had $2.7 million in gross receipts.
Explanation:
The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:
- Partnership or C corporation with less than $5 million in total sales revenue per year
- Sole proprietorship or S corporation with less than $1 million in total sales revenue
- Cannot be a publicly traded corporation
- Personal service businesses with more than 95% of revenue specifically related to services.
- Family owned farms with total annual sales revenue less than $25 million.
